The government on Tuesday announced a support package for the pub sector and live music venues, providing some relief on property tax rises announced last year which had left the hospitality industry reeling.
Planned increases to business rates, announced in November's budget, prompted an outcry, including warnings of mass closures and even a group of more than 1,000 landlords banning Labour Party lawmakers from their premises.
On Tuesday the government, having signalled earlier this month they would try to soften the blow, announced a new support package.
"From April, every pub in England will get 15 per cent off its new business rates bill on top of the support announced at budget. Pub's bills will then be frozen in real terms for a further two years," Treasury minister Daniel Tomlinson told parliament.
"This support is worth £1650 for the average pub just next year, and will mean that around three quarters of pubs will see their bills either fall or stay the same next year."
Independent retailers have earlier demanded equal treatment for small shops after the government announced plans to support pubs with rate rises.
The watering down of the tax rise is the latest in a string of partial or full reversals from prime minister Keir Starmer's government as, struggling to invigorate a relatively sluggish economy and suffering in the polls, he looks for ways to raise more money to balance the books and improve public services.
Previous u-turns driven by pressure from within his own party and directly from voters, include a plan to raise more tax from farmers, cut welfare spending and reduce subsidies on energy bills for the elderly.
The government has also announced a High Streets Strategy, set to be published later this year, and a review into business rates valuation. The review will be carried out by the government alongside businesses and their representatives as well as valuation experts, ensuring that any decisions that follow will be implemented for the 2029 revaluation.
“If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive,” chancellor of the exchequer Rachel Reeves said. “We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.”